SBI vs Canara Bank – Which Bank Offers Better Dividend Benefits to Shareholders?

State Bank of India (SBI) and Canara Bank, two of India's largest public sector banks, are preparing to release their quarterly results and final dividends for the financial year 2024-25. SBI will announce its Q4 earnings and final dividend on May 3, while Canara Bank will declare on May 8. Both the key banks are known for regular dividend payments, attractive dividend yields, and consistent returns over the years. Many retail and institutional investors consider them reliable stocks in the banking sector.

SBI Dividend vs Canara Bank Dividend

Here is a comparison of both banks on dividend payout, dividend yield, and stock performance to understand which may be a better dividend stock.

1370 Percent Dividend: SBI's Highest Dividend

SBI, the country's biggest state-owned lender, has not yet declared its dividend for FY25. However, for the financial year 2023-24, the bank declared a dividend of Rs 13.70 per share. This was based on a face value of Rs 1, which means a 1370 percent dividend. This was also the highest dividend amount declared by SBI so far.

Based on the last dividend of Rs 13.70, the dividend yield comes to around 1.7 per cent. This means that for every Rs 100 invested in SBI shares, investors earned Rs 1.70 as dividend income over the past year.

SBI Share Price Today

State Bank of India's current market price stands at Rs 816.55 per share, increased by Rs 17.90 or 2.24% on Monday than previous closing. SBI shares have dropped 1.70 per cent in the last one year. However, over two years, SBI stock rose by 42.21 percent. In three years, the stock has gained 61.46 per cent and in five years, it surged 345 percent. On Friday, the stock closed 1.78 per cent lower at Rs 798.75.

Canara Bank Dividend

On the other hand, Canara Bank is also expected to declare its final dividend for FY25 on May 8. In the financial year 2024, Canara Bank had paid a dividend of Rs 3.22 per share. The face value of its shares is Rs 2 after a recent stock split. Earlier, the bank's shares had a face value of Rs 10, which it split into Rs 2 in 2024, just before declaring the dividend.

Canara Bank's share is currently priced at Rs 96.47. With a dividend of Rs 3.22 per share declared last year, the dividend yield is around 3.3 percent. Investors received Rs 3.30 for every Rs 100 invested in the bank. This is nearly double the yield of SBI, giving Canara Bank an edge on this parameter.

Canara Bank Share Price Today

on Monday, Canara Bank's share price was settled at Rs 98.59, reflecting an increase of Rs 2.06 by +2.13% from its previous closing price of Rs 96.18 on Friday. The bank's shares have fallen 21.75 per cent in the last one year. Despite the short-term fall, the stock jumped 56 percent in the last two years.

Over three years, the stock surged over 111 percent and in five years, it has gained more than 493 per cent. As of today, Canara Bank's shares are priced at Rs 98.59, up by Rs 2.06 (+2.13%) from the previous session's closing of Rs 96.47.

Disclaimer

The information provided above is for informational purposes only. The views expressed are not financial advice and should not be considered as recommendations for any investment decisions. Neither the author nor Greynium Information Technologies shall be held liable for any losses incurred as a result of decisions based on this write-up. Users are advised to consult with certified financial experts before making any investment decisions.